Daily Market Update- Equity 28 June 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 28 June 2023

The benchmark Nifty index opened with a gap on the higher side and closed above 18800 levels after adding 126 points to its previous closing values.

Overview and Outlook

Global Market Update

  • US equity markets settled higher in range 0.63% to 1.65%
  • European equity markets settled on a flat to positive note
  • Majority of Asian equity markets are trading higher
  • SGX Nifty is up by 50 points (as on 8:30 AM)


News highlights from across the globe

  • Asian equity markets are trading higher on Wednesday after a rally on Wall Street that was fueled by strength in U.S. consumer confidence and home sales.
  • Futures rose for benchmarks in Japan, Australia and Hong Kong, while an index of U.S.-listed Chinese stocks climbed the most in three weeks.
  • Investors in Asia will be watching the release of figures for Chinese industrial profits, amid calls for Beijing to provide more stimulus, and Australian inflation data, which will help shape the central bank’s thinking on interest rates.
  • Brent crude declined to $72 a barrel and the yield on the 10-year U.S. bond was trading at 3.76%


Important news updates from the domestic front

  • Aditya Birla Fashion and Retail, TCNS Clothing: CCI has approved the acquisition of 51% of the expanded share capital of TCNS Clothing Company by Aditya Birla Fashion and Retail.
  • Housing Development Finance Corp: Reserve Bank of India, through a letter on Tuesday, removed restrictions on HDFC Credila from onboarding customers. The relaxation is subject to HDFC Bank applying for a change in shareholding of HDFC Credila by July 31.
  • State Bank of India has decided to acquire an entire 20% stake held in SBI Capital Markets in SBI Pension Funds. Separately, S&P Global Ratings raised standalone credit ratings for SBI to BBB from BBB- rating.
  • Hindustan Aeronautics recommended a stock split of existing one equity share of the face value of Rs 10 each fully paid up into two equity shares of Rs 5 each fully paid up. It also recommended a final dividend of Rs 15 per equity share for the fiscal 2022-23.
  • Macrotech Developers: Morgan Stanley slashed the company’s price target to Rs 572.50 from Rs 1,145 previously citing that the company has issued bonus shares resulting in a doubling of the share count.
  • Bajaj Finance: S&P Global Ratings raised standalone credit ratings to BBB-/Stable/A-3 from BB+/Positive/B.
  • Union Bank of India: S&P Global Ratings raised standalone credit ratings to BBB-/Stable/A-3 from BB+/Stable/B.
  • ITC acquired 857 compulsorily convertible preference shares of Rs 10 each of Mother Sparsh at a consideration of Rs 11.54 crore. ITC now holds 26.50% of Mother Sparsh’s share capital.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side and closed above 18800 levels after adding 126 points to its previous closing values.

The broader market performed in line with the benchmark as Mid-cap and Small-cap were up over 0.50% each. The market breadth was skewed in favor of the bull as over 1.5 advances were recorded for every declining share at NSE.

Barring FMCG and Oil & Gas index that settled on a flat to negative note, all the sectoral indices tracked at NSE settled in green. Amongst them, Nifty Financial Services and Realty index were at the top of the tally rose over 1% each followed by Banking space, including Private as well as PSU Banks indices, which rose over 1% each.

Technically, Nifty index is well placed on multiple chart frames and closed near the upper band of the congestion zone i.e. 18500-18900 levels. Going ahead, we reiterate our bullish view on Nifty index till it is holding above 18500 levels on closing basis. Crossover and sustenance above 18900 levels will open the doors for further up move in the near term.


Derivatives Overview & Outlook

Yesterday, Nifty and Banknifty futures added around 9% & 15% of open interest respectively as long buildup whereas Finnifty futures shed around 18% of open interest as short covering.

Nifty and Banknifty futures have rolled 56% & 54% of open interest respectively into next contracts so far.

On options front, put writing was seen at multiple strikes along with some call writing at multiple strikes and maximum positions are at 18700 PE and 18900 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 2024 Cr in the cash segment, bought stocks futures worth Rs 1329 Cr and also bought index futures worth Rs 2861 Cr. DIIs were net sellers in the cash segment to the tune of Rs 1991 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 18920-19000; Supports 18740-18660

Banknifty – Resistances 44320-44550; Supports 43800-42550

Finnifty – Resistances 19850-19950; Supports 19650-19550


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